CAPE TOWN, SOUTH AFRICA: Despite the considerable potential that exists to produce electricity using renewable energy (RE) in Southern Africa, RE projects have been largely limited to off-grid, small-scale applications.
However, the renewable energy market in South Africa is expected to grow exponentially in the next few years, owing to the announcement of the renewable energy feed-in tariff made in March 2009.
New analysis from Frost & Sullivan, Southern African Renewable Energy Equipment Market, finds that the industry earned revenues of $28.4 million in 2008 and estimates this to increase nearly tenfold by 2015, to reach $262.3 million. This will include projects to develop energy from solar photovoltaic, solar thermal, wind power and biomass sources.
"The growth of the wind power market and large-scale solar concentrating projects will be driven by an increasing number of joint ventures," notes Frost & Sullivan Research Analyst Sipha Ndawonde. "Such ventures will be between project developers with local knowledge and private equity investment firms, backed by the support of international original equipment manufacturers."
With tightening sources of global credit and more countries reporting negative economic growth rates, private equity investment companies have become more selective and strategic about the sectors into which they invest.
Sustainable energy project portfolios have however bulged to more than $1 billion, dedicated to financing RE projects in Southern Africa.
"This is an indication that investors view RE and energy efficiency projects in Southern Africa as having favourable returns and representing a solid investment decision," Ndawonde says.
"An abundance of natural resources combined with a stable political environment, reasonable economic growth rates and growing interest from private equity firms means that large-scale RE projects are set to penetrate into the Southern African countries of South Africa, Botswana and Namibia."
Showing posts with label Frost. Show all posts
Showing posts with label Frost. Show all posts
Wednesday, August 5, 2009
Wednesday, June 17, 2009
Renewable energy sustains growth in European solar thermal systems market
DUBLIN, IRELAND: Research and Markets has announced the addition of Frost & Sullivan's new report "European Solar Thermal Heating Systems Market" to its offering.
The market for solar thermal systems (STS) in Europe has witnessed major developments at all levels in the last four years. Policy makers, market participants and end users have given greater attention to STS, ensuring a high growth potential. Due to its tremendous long-term growth prospects, this market has attracted several new participants that are playing a central role in promoting the industry.
"Currently, the key driver for the market in Europe is government support for STS in the form of financial subsidies, tax credits, and regulatory reforms," says the analyst of this research. "The market for STS is highly responsive to fluctuations in the provision of governmental support."
For instance, the Italian market witnessed strong growth levels following increased government subsidies for STS. On the other hand, the German market declined significantly as a direct result of a temporary disruption to these subsidies and recovered as soon as they became available again.
High growth in the STS market, particularly over the last four years, has attracted several new participants that are promoting the industry and making STSs accessible to a wider customer base.
Develop low-cost, STS to curb prices
Cost is the primary hurdle confronting the STS market. Despite the financial incentives that the solar thermal installations receive, the overall price is still high and the recoup period can go up to 20 years in some regions.
Additionally, a STS is only a complementary alternative and not a substitute for a traditional hot water system. Therefore, it is not a viable investment option for most end users, especially in countries where conventional energy prices are low. "In many countries, particularly in northern Europe, the solar yield can be as little as 40 per cent," explains the analyst. "Additionally, the up-front cost of a solar thermal system continues to be expensive."
Companies should work on developing low-cost and effective solar thermal systems, particularly in the current economic conditions in Europe. On the whole, with escalating competition, both manufacturers and installers will be forced to reduce prices and the overall price of STS will go down.
The market for solar thermal systems (STS) in Europe has witnessed major developments at all levels in the last four years. Policy makers, market participants and end users have given greater attention to STS, ensuring a high growth potential. Due to its tremendous long-term growth prospects, this market has attracted several new participants that are playing a central role in promoting the industry.
"Currently, the key driver for the market in Europe is government support for STS in the form of financial subsidies, tax credits, and regulatory reforms," says the analyst of this research. "The market for STS is highly responsive to fluctuations in the provision of governmental support."
For instance, the Italian market witnessed strong growth levels following increased government subsidies for STS. On the other hand, the German market declined significantly as a direct result of a temporary disruption to these subsidies and recovered as soon as they became available again.
High growth in the STS market, particularly over the last four years, has attracted several new participants that are promoting the industry and making STSs accessible to a wider customer base.
Develop low-cost, STS to curb prices
Cost is the primary hurdle confronting the STS market. Despite the financial incentives that the solar thermal installations receive, the overall price is still high and the recoup period can go up to 20 years in some regions.
Additionally, a STS is only a complementary alternative and not a substitute for a traditional hot water system. Therefore, it is not a viable investment option for most end users, especially in countries where conventional energy prices are low. "In many countries, particularly in northern Europe, the solar yield can be as little as 40 per cent," explains the analyst. "Additionally, the up-front cost of a solar thermal system continues to be expensive."
Companies should work on developing low-cost and effective solar thermal systems, particularly in the current economic conditions in Europe. On the whole, with escalating competition, both manufacturers and installers will be forced to reduce prices and the overall price of STS will go down.
Wednesday, May 27, 2009
Examining BIPV market in North and Southeast Asia
DUBLIN, IRELAND: Research and Markets has announced the addition of Frost & Sullivan's new report "BIPV Markets in North and Southeast Asia" to its offering.
This research service analyzes the current market trends, revenue distribution, key regulations, competitive structure, market drivers, market restraints, end-user analysis and market share analysis for the building integrated photovoltaic market in North Asia and Southeast Asia.
Market overview
Global Warming heats up BIPV market in North and Southeast Asia
With global warming endangering several species of life and posing bigger potential risks, there is an urgent need to curb its main cause -- greenhouse gas (GHG) emissions. Clean energy technologies such as wind, solar, and biomass are gradually being promoted over conventional, GHG-emitting power sources.
Among solar energies, BIPV is being increasingly sought out by real estate companies and builders for its distributed power generating ability, especially in the urban areas. Seeing that urban centers and cities are major power consumption centers and yet do precious little to cut back GHG emissions, high net worth individuals and commercial buildings have begun to extensively endorse 'green energy' to ensure a clean environment.
"Growing awareness among various end-user segments coupled with abundant availability of sunlight is fostering the growth of BIPV market in cities," says the analyst of this research. "Solar energy integrated townships and clean energy buildings are being extensively planned and supported to highlight the savings in energy and measure carbon dioxide emissions."
Breaking out of the confines of rural area deployment for distributed or centralized power generation, renewable energy, especially BIPV, is gaining widespread acceptance among city builders. One of the main reasons for its popularity is its prevention of transmission and distribution (T&D) loss, as electricity is consumed at the point of generation.
However, the BIPV market still has some ground to cover before it can aim for large-scale commercialization in North and Southeast Asia. This is because builders are put off by the high installation and generation costs, a minimum pay back period of six to eight years, and lack of an attractive feed-in-tariff from the utilities.
For reasons of economic viability and low product awareness, builders and real estate companies prefer to buy electricity from the utilities at a much cheaper rate than invest in renewable energy sources.
Despite the hurdles, BIPV power generation has made a case for itself with its unique ability to power mass applications in urban areas. While promoting energy efficiency and low energy use in buildings, it also offers multi-functional solutions for modern-day architecture.
Therefore, despite a slowdown in capacity additions, North Asia exhibits great potential for the commercial end-user segment. Among all the countries in this region, Japan is the one that has best cashed in on the opportunities in the commercial and residential segments.
"The withdrawal of subsidies in 2005 has had a moderate impact on the growth of the BIPV market," notes the analyst. "Meanwhile, in South Korea, the introduction of attractive feed-in-tariff in is likely to fuel the growth of centralized solar PV systems."
On the other hand, Southeast Asia holds promise for BIPV systems in both the residential and commercial end-user segments, thanks to a strong push from the government and solar subsidy programs. Malaysia has successfully deployed BIPV systems and other countries are soon likely to follow in its footsteps.
Singapore trails close behind Malaysia in BIPV deployment and installations in this country are forecast to increase from 2010 due to the introduction of the 'Green Mark Scheme' in the construction industry.
Evidently, it is vital to have solid government backing in the form of long-term subsidies and incentives. An attractive feed-in-tariff and a robust policy framework is needed to provide guidance to potential developers and end-users, while greater awareness through frequent information dissemination on the technology, economics, and business models of BIPV installations will also go a long way in buoying this market.
Reduced installation costs and integration in the industry are the other crucial factors that can kindle the interest of the industry stakeholders. This will also encourage R&D in BIPV systems' designing and facilitate large-scale commercialization of the technology.
This research service analyzes the current market trends, revenue distribution, key regulations, competitive structure, market drivers, market restraints, end-user analysis and market share analysis for the building integrated photovoltaic market in North Asia and Southeast Asia.
Market overview
Global Warming heats up BIPV market in North and Southeast Asia
With global warming endangering several species of life and posing bigger potential risks, there is an urgent need to curb its main cause -- greenhouse gas (GHG) emissions. Clean energy technologies such as wind, solar, and biomass are gradually being promoted over conventional, GHG-emitting power sources.
Among solar energies, BIPV is being increasingly sought out by real estate companies and builders for its distributed power generating ability, especially in the urban areas. Seeing that urban centers and cities are major power consumption centers and yet do precious little to cut back GHG emissions, high net worth individuals and commercial buildings have begun to extensively endorse 'green energy' to ensure a clean environment.
"Growing awareness among various end-user segments coupled with abundant availability of sunlight is fostering the growth of BIPV market in cities," says the analyst of this research. "Solar energy integrated townships and clean energy buildings are being extensively planned and supported to highlight the savings in energy and measure carbon dioxide emissions."
Breaking out of the confines of rural area deployment for distributed or centralized power generation, renewable energy, especially BIPV, is gaining widespread acceptance among city builders. One of the main reasons for its popularity is its prevention of transmission and distribution (T&D) loss, as electricity is consumed at the point of generation.
However, the BIPV market still has some ground to cover before it can aim for large-scale commercialization in North and Southeast Asia. This is because builders are put off by the high installation and generation costs, a minimum pay back period of six to eight years, and lack of an attractive feed-in-tariff from the utilities.
For reasons of economic viability and low product awareness, builders and real estate companies prefer to buy electricity from the utilities at a much cheaper rate than invest in renewable energy sources.
Despite the hurdles, BIPV power generation has made a case for itself with its unique ability to power mass applications in urban areas. While promoting energy efficiency and low energy use in buildings, it also offers multi-functional solutions for modern-day architecture.
Therefore, despite a slowdown in capacity additions, North Asia exhibits great potential for the commercial end-user segment. Among all the countries in this region, Japan is the one that has best cashed in on the opportunities in the commercial and residential segments.
"The withdrawal of subsidies in 2005 has had a moderate impact on the growth of the BIPV market," notes the analyst. "Meanwhile, in South Korea, the introduction of attractive feed-in-tariff in is likely to fuel the growth of centralized solar PV systems."
On the other hand, Southeast Asia holds promise for BIPV systems in both the residential and commercial end-user segments, thanks to a strong push from the government and solar subsidy programs. Malaysia has successfully deployed BIPV systems and other countries are soon likely to follow in its footsteps.
Singapore trails close behind Malaysia in BIPV deployment and installations in this country are forecast to increase from 2010 due to the introduction of the 'Green Mark Scheme' in the construction industry.
Evidently, it is vital to have solid government backing in the form of long-term subsidies and incentives. An attractive feed-in-tariff and a robust policy framework is needed to provide guidance to potential developers and end-users, while greater awareness through frequent information dissemination on the technology, economics, and business models of BIPV installations will also go a long way in buoying this market.
Reduced installation costs and integration in the industry are the other crucial factors that can kindle the interest of the industry stakeholders. This will also encourage R&D in BIPV systems' designing and facilitate large-scale commercialization of the technology.
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